They are certainly doing harm to Java, but Oracle hasn't sued IBM yet over this and there is quite a bit Oracle would go after if it were truly intent on killing the JVM:
http://en.wikipedia.org/wiki/List_of_Java_virtual_machines
I don't think that anyone is questioning anyone looking into using other languages. I even suggested Ruby myself.
It might be a dark age for Oracle sponsoring Java Community Process development, but some of the JSRs have been crap. If development of new JSRs slows to a crawl, so be it. A wealth of Java, Ruby, Python, etc. projects have evolved without being attached to a bureaucratic standards committee.